He will lead Australia for the first time in a November 15 friendly in Sydney against Costa Rica.

The Melbourne Victory head coach was the leading candidate to take over the role after the recent sacking of Holger Osieck, with Central Coast Mariners coach Graham Arnold and Western Sydney Wanderers mentor Tony Popovic were also contacted by the FFA.

The Victory appeared to be the only stumbling block to Postecoglou's appointment with the A-League club demanding a rumoured $1 million compensation for Postecoglou.

The final piece of the puzzle fell into place this morning, when the Victory announced it would not prevent their coach from taking the reins of the Socceroos.

FFA chairman Frank Lowy confirmed Postecoglou will coach the Socceroos through to the 2018 Russia World Cup.

"We are looking forward to long service from him," he said.

"He's the right person for this time of our development.

"I think the last 10 years or so, we've had coaches from overseas. That was the time for it then, but now is the right time for an Australian coach.

I've got my ideas of how I want the team to play ... and then we'll find out who fits into that. I'm not going in there with a target or hit-list of people, it's not the way I work.

Ange Postecoglou

"This is a plan we've had for quite a while and it has come to fruition. All I really want to do is wish him luck and hope that he succeeds. His expectations are very high of himself."

Postecoglou said it was a tremendous honour to be appointed to the position, saying he does not believe the country's recent thrashings at the hands of Brazil and France reflect where the Socceroos' true ability.

"It's a tremendous honour for me to be sitting here. It would be remiss of me not to acknowledge that it's been a tough few weeks, but I am tremendously honoured to be in this position," Postecoglou said at a press conference.

"I'd like to thank the Melbourne Victory football club as well ... they've been tremendously supportive of me. It was a project I was really passionate about, but the chairman said country comes first.

"I've got my ideas of how I want the team to play ... and then we'll find out who fits into that. I'm not going in there with a target or hit-list of people, it's not the way I work. Sometimes people surprise you.

"I want to get the best out of every player available. Will there be changes? Of course there will, I've got my own way of doing things."

Postecoglou wants to restore pride to national side

Postecoglou insists he wants to change the perception around the Socceroos, saying it is time the national side stopped down-playing its chances on the international stage.

"Language is really a powerful tool and I've been a little bit frustrated by our constant painting a picture of a team that's not good enough, a league that's not good enough, players that are not good enough," he said.

"Regardless of the state of the game - and it's been a lot worse than it is right now - we've never taken a backwards step.

"Maybe people were fearful of building people's hopes up and falling short ... but I don't think that's what a national team is about.

"You look across all the codes and the national teams ... we want them to do well and not many of them are at the moment."